Brussels, 30/03/2010 (Agence Europe) - COPA (Committee of Professional Agricultural Organisations in the EU) and COGECA (General Committee for Agricultural Cooperation in the EU) urged the European Commission on Monday 29 March to “urgently open private storage for olive oil”. In a letter sent to the European Commission, Pekka Pesonen, COPA-COGECA General Secretary, explains that “for two consecutive years, producers have been selling their product below production costs, even though production matches demand”. For example, production costs in Spain, a major producer, reached €2.4/kg whilst prices were between €1.80 and €2/kg, according to figures from the Spanish Ministry of Agriculture. Similar situations can be found in the other main EU producer countries, such as Italy, Pekka Pesonen adds.
Benedetto Orlandi, who chairs the working group on olive oils and table oils at COPA-COGECA, considers the situation “catastrophic”. Producer prices fell by as much as 15.2% in 2009, compared to the previous year. “Private storage must be activated immediately, to avoid a price crash”, he stressed. According to Orlandi, experience has shown that opening of private storage can boost market prices immediately and improve farm profitability. “Without action, more farmers will go out of business and there will be a further exodus of farmers from the rural areas of the EU”, the EU farm organisations say with concern.
Speaking on Monday 29 March, Dacian Ciolos, European Agriculture Commissioner, said the European Commission is monitoring developments on the market situation. Once it is felt such intervention is effective and warranted, then they will look at ways to do it, he said. The commissioner went on to explain: “I am not saying we shall not intervene but I cannot say we shall. We have to look at the figures for the whole of the sector in the EU, taking into account the fact that the EU is the main producer of olive oil in the world”. He pointed out that what is happening on the European market has repercussions at global level. Ciolos said by way of conclusion: “Before taking a decision, one must therefore make sure that this measure will be effective in terms of market signalling. We shall not deprive ourselves of this measure once we have proof convincing us that it can be effective”. (L.C./transl.jl)